depreciation

[joankwolff]

I am depreciating my asset for 7 years.  How do I change it from the 5 years that is automatically input

[DaveF1006]

In TurboTax, the "Recovery Period" (the number of years) is determined by the category you select for the asset. The software defaults to 5 years because many common business assets (like computers, cars, and copiers) fall into that class. To change it to 7 years, you must change the asset's classification.

Legally, you are required to use the depreciation category (and recovery period) that matches the IRS-defined class life for your specific asset. You do not have the legal right to choose a longer or shorter period simply because you prefer it.

However, if your asset are things like "Tools, Machinery, Equipment, Furniture" and then select "Office Furniture, Fixtures, and Equipment, then you can change its category by using the steps I have included.

However, if it is for computers, copiers, automobiles, light-duty trucks, computers, peripheral equipment, and calculators, it must stay at 5-years. 

Here is how to change, if permissible.

1. You cannot manually type in "7" in the online version. Instead, you must select a category that the IRS defines as a 7-year asset. 
2. Step 1: Go to the Assets/Depreciation section of your business or rental. 
3. Step 2: Edit the asset in question. 
4. Step 3: When asked "Describe this asset," do not select "Computer," "Video Equipment," or "Vehicle" (these are 5-year assets).
5. Step 4: Select "Tools, Machinery, Equipment, Furniture" and then select "Office Furniture, Fixtures, and Equipment".
6. The Result: This category (which includes desks, files, and safes) is legally a 7-year asset. TurboTax will automatically switch the math from 5 to 7 years once you select this.

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